05 March 2010
UK electronics manufacturing industry calls for a single voice
Key speakers from Government and the electronics industry joined forces yesterday at the first Future of UK Manufacturing Summit, organised by Findlay Media. Delegates unanimously agreed that there is a crucial need for a single voice to express key issues to Government.
Prime concerns expressed by delegates included encouraging more young people into the industry, skills issues, energy costs and optimising supply chains.
The issues were raised during a discussion group hosted by Electronics Leadership Council chairman, Harry Tee. Delegates from a broad range of sectors agreed that there is a vital need to add value to UK PLC. Tee warned: "We don't have a cohesive voice, so manufacturers need to pull together. We must agree our key messages and get them to policy makers."
David Kynaston, chair of the Electronics Knowledge Transfer Network, added: "To have an effective manufacturing strategy, we must embrace low cost resources, but to sustain electronics manufacturing, we need a high level of efficiencies." Kynaston noted that without Government investment, innovative products in the UK will 'perish', but conceded that the industry could only expect limited participation.
"Unfortunately, we are dealing with a bankrupt administration," he continued. "This brings with it a huge restriction. When you need support from the Government you are often tied up by legislation – the regulations are phenomenal and it's a major impediment for anyone investing in a new plant in the UK."
Delegates observed that offshoring has now become 'too easy' and investment in skills was crucial if the UK is to create a differentiation in the global market. "We don't want people with core skills," noted delegate Colin Guest, manufacturing and engineering manager with Zarlink Semiconductor. "Graduates have a level of expertise in a particular field but cannot get jobs as the market is not there. There is a growing need to recognise technicians and apprentices, but there is still a matter of influencing Government and getting the message across to create excitement for young people."
Energy costs were also a major concern, particularly as semiconductor sites in the UK are typically large. Philip Baker, engineering manager at Mekufa, observed: "Compared with the rest of Europe, the UK's electricity is far more expensive. With the Gigawattage manufacturers produce, it's a significant problem and will affect our infrastructure."
The delegates concluded that the three key issues that SMEs must focus on are innovation, to work the industry's way out of recession; regulation, to make it easier for companies to survive and move forward; and access to export markets to make it easier to market abroad. All agreed that a single voice was needed to address the industry's concerns to Government level – a warning to all parties that the manufacturing sector could equate to 3million votes.
Author
Chris Shaw
Supporting Information
Websites
http://www.ukmanufacturingsummit.co.uk/
Companies
Findlay Media Ltd
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